With the approval of the Brazilian government, the Board of Directors of Embraer ratified the approval of the terms of the merger negotiations between the Brazilian company and the American company Boeing.
Since July 2018, the two companies have been negotiating a merger agreement, which provides for the creation of a commercial aviation company and another for defense – what is called a Joint Venture. The American giant will hold 80%
of the new business, while Embraer will retain the remaining 20%, which may be sold later.
Under the agreement, Embraer’s defense businesses will also be shared, focusing on the development of the KC-390 tactical transport aircraft, with control remaining with the Brazilian company.
Despite being privatized in the 1990s, the Brazilian government retains a “golden share” in Embraer, a share that gives the Union veto power over strategic decisions made by the company: such as the transfer of corporate control.
Source: Government of Brazil